Recent strong commodity prices have led to rising demand for farmland and this is projected to continue for the medium term, due to increasing population and incomes, and growing use of biofuels. Global analysis indicates that about 450 million ha of suitable land is available to bring into cultivation, much of it in sub-Saharan Africa, Latin America, Russia, and to some extent Australia. Improved returns in farming have translated into a sharp rise in domestic and foreign investment into farm land, largely focused on Latin America, Africa and Eastern Europe. A surprising development, given the long tradition of family farming almost everywhere, has been the rise of corporate superfarms often managing over 100,000 ha of prime crop land. Where land and other markets work well, these new developments represent an opportunity to tap capital, technology and new markets. However, with poor land governance and weak institutional capacity, there have been many failures in economic, social and environmental terms, especially in Africa. In Australia, given skilled farmers and strong institutions, there seems little reason for concern about recent reports of foreign investment in farmland. Australia has set a global example of openness to trade and investment. Increased transparency through a register of such investments could alleviate fears in some circles of a foreign ‘landgrab’ in Australia.FDI, Foreign Investment, Agriculture, agribusiness, land grab